After months of consultation with the industry, the CITB-ConstructionSkills Board has rubber stamped a new look Grants Scheme, which will provide £113m grant funding for businesses that train. The revised Grants Scheme has been redesigned to be future proof for the industry, ensuring employers have the right skills, in the right place at the right time.

Following a series of changes to the scheme last year, the Industry’s Training Board carried out a fundamental review to make sure that the scheme continues to provide relevant training grants that help businesses increase their productivity, compete at the highest level post-recession and, importantly, improve upon and maintain Health & Safety standards. Work on reducing the organisation’s own cost base is being pursued simultaneously.

Chris Jones, Learning and Development Director at BAM Construct UK Ltd, Chairman of the Grants Scheme Working Party and member of the Training Committee and Board said: “The recession has changed our industry significantly and we need to make sure that we continue to keep pace and provide training that will help businesses to succeed and prosper. New skills are required and the board has been tasked with providing a grants system that is fair to all and to help businesses take advantage of new and exciting opportunities that are on our doorstep.

“Our grants scheme has served us well for 40 years, but it is in everyone’s business interests to review it, to make sure that it is relevant for a modern and progressive industry.”

The Board agreed that the new look Grants Scheme should include changes to the scheme, which include:

• Setting the total apprenticeship package at £9,000 over a three or four year period dependant upon the trade to simplify the Scheme
• Confirmation that the total value of grant for attendance and achievement of the Advanced -Craft certificate grants will remain the same as before
• Standard attendance day rate of £17.50, which applies to training plans or short duration.
• Setting a maximum of £6,000 support for undergraduates in their placement year
• Setting a single achievement rate of £275 for SVQ qualifications at level 2 and above
• Limiting the average number of grant aided training days on a training plan and short duration training at three days – slightly above the current industry average. For example for 100 employees, 300 days maximum grant
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• Awarding an additional £7.50 per day for technical and professional students

• Setting a 10 per cent supplementary payment across all grant rates to simplify the scheme
• Plant technical tests to be preserved but rates to be reduced by 25%

The Grants Scheme Working Party has met to agree the terms and conditions for the new scheme. The committee, which comprises of federations and employers, agreed the following, subject to approval by the Training Committee in June:

• That employers must complete a 2010 levy return to be eligible for any grant in 2010/11. No grant will be paid until the return has been received. If the employer does not submit their 2010 Levy Return by 31 July 2011, they lose eligibility to all grants claimed in 2010/11.
• If an employer is newly registered with CITB-ConstructionSkills, they will only be able to claim apprentice grants before being liable to pay a levy assessment.
• To remove the £210 apprentice adoption grant, in line with removal of registration grant.
• That employers should provide forecasting data for Technical and Professional attendance and achievement A09 & A25 and Construction Related work experience A19.
• The payment profile for apprentices’ grant, which is now £1,715 year 1, £3,485 year 2 and £3,800 year 3 and 4. This excludes any grant that may be claimable for the Advanced Craft certificate

In addition, the Board took the opportunity to encourage innovation in the industry, by agreeing that 1% of the grants budget will be allocated to create a development fund that will help employers to keep up with and deliver the Future Skills agenda and other new initiatives. These measures combined will ensure that the construction industry is supported through the downturn, and primed to take advantage of new opportunities that may come along after recovery.

The new scheme will be rolled out in August 2010 and businesses will find it far easier to access grant, as the categories have been streamlined to make the whole process far simpler.

Mark Farrar, Chief Executive of ConstructionSkills, said: “It is essential that we maintain investment in the current and future workforce, but with falling levy income and increased demand for grants, the Board has had to review the scheme. The board recognises that in doing this, tough decisions had to be made. The need to minimise the impact on new entrants, in particular apprenticeships, is one area that has caused much debate. However, the board has made every effort to keep apprenticeship grants at the highest rate affordable given competing priorities and the need to plan for the future.

“I can assure all employers that these decisions were not made lightly or without extensive consultation with industry representatives. The new look Grants Scheme will not only safeguard the skills we have now, but will also help construction employers to explore new skills and training needs for the future.”

These changes to the Grants Scheme form part of an overall plan to ensure that CITB-ConstructionSkills moves forward on a firm and sustainable financial footing. With the organisation facing lower income from falling levy payments and reduced public sector funding opportunities, the Board noted the progress to date to drive up other sources of income and cut overheads. This has resulted in a number of job losses across the organisation, a prioritisation of activities and other efficiency measures. The result will be a 10% reduction in operating expenditure in 2010 overall.

(GK)